My fintech empire.

Bionic Dynamics' better-than-expected earnings forecast also allowed investors to see the charm of technology stocks. Currently, technology stocks account for an absolute proportion of the SGX market, which is also the reason for the large fluctuations in the SGX market.

The charm of technology stocks lies in their high growth characteristics. Although the current price-to-earnings ratio of hundreds of times can be called a dream ratio, as long as the value breaks through, the price-to-earnings ratio of hundreds of times can be quickly digested within one or two years, and the inflated bubble can be filled by value growth.

Of course, the risks are also very high, and not every technology stock can rise.

Investors are of course aware of this, so the value of the "galaxy" label is extraordinary. Just look at the large-cap technology stocks worth hundreds of billions of dollars in the SGX market, their price-to-earnings ratios are actually not low.

Investors have given these companies a higher price-to-earnings ratio than other technology stocks in the same industry segment. The reason is simple. The label of "galaxy" makes investors feel much more reliable. Moreover, companies in the cluster are often leaders in their respective industries, with a much lower probability of bankruptcy and strong growth potential.

In this way, investors will naturally be more willing to hold such asset targets and are willing to pay for them even at a considerable premium.

……

却说此刻的资本市场，上午10点左右的时候，新证50指数的涨幅扩大至+0.65%，指数上攻到了4583点，正式一举突破了去年2018年9月26日的历史高点4582.78点创出了历史新高。

When seeing the Xinzheng 50 Index hit a new high, investors in the A-share market were also excited. Half a month ago, everyone thought it would hit a new historical high in one go, but it failed to break through three times and everyone thought it was unlikely to happen before the holiday.

I didn’t expect the SGX market to give me such a surprise on the last day before the holiday. It broke through when everyone thought it couldn’t.

Investors said that they can now celebrate the New Year happily.

In the afternoon, the gains of the New Securities 50 Index further expanded, not only breaking the historical high, but also standing above the 4600-point mark on the last trading day before the Spring Festival.

The two neighboring markets also performed well today. The Shanghai Composite Index also regained the 2600 point mark today. Individual stocks in the three major markets showed an overall upward trend. Among the more than 4000 stocks, only more than 200 were in the green, and the rest were in the red.

The big financial sector performed well. The securities sector, which had recently ended five consecutive declines, opened higher and closed higher today, with the sector's increase approaching 3.5 percentage points.

The performance of securities companies in 2018 was not bad, especially compared with the current position, they are definitely in the historically undervalued range. However, the trend of this sector is often not determined by performance.

As of the closing, the Xinzheng 50 Index closed up +1.61% at 4626.81 points. The index formed a bald-headed and barefooted positive line, and the closing price was the highest price of the day; the Shanghai Composite Index closed up +1.30% at 2618.23 points; the Shenzhen Component Index rose +2.74% to 7684.00 points.

The total turnover of the three major markets was 10684 billion, of which the SGX market had a total turnover of 8067 billion throughout the day.

Judging from the volume, today's market is shrinking because it is the last trading day before the Spring Festival, and there is no large influx of off-market funds. This is a domestic characteristic, because at this point in time we are celebrating the New Year and other holidays, and everyone needs money.

There is not much outflow of funds in the market. If there is outflow today, it will just lie in the account and cannot be withdrawn. Moreover, it is better to hold on to the funds when the market is rising sharply. Funds that should have been withdrawn had already been withdrawn yesterday.

……

With the arrival of the Spring Festival holiday, which lasts until the sixth day of the first lunar month, which is the weekend of February 2th, this day is also the last day of the Spring Festival holiday. Fang Hong also returned to his hometown to celebrate the New Year this year and returned to Xincheng today.

Meditation in the villa.

At this moment, Fang Hong was in the large living room on the first floor. On the table next to the sofa in the living room were several bundles of red cash bills. Each bundle contained 2019 red bills, and the thickness of a single bundle was about 25 cm.

Lin Yan, Lin Yun, Evelyn and other girls also came back. At this moment, they gathered in the living room and wished Fang Hong a happy new year in unison, and of course, red envelopes were indispensable.

Fang Hong, who was sitting on the big sofa in the living room, crossed his legs, looked around at the girls and said with a smile, "Each of you carry a bundle, take it by yourselves."

The sisters all smiled and said in unison: "Thank you, Brother Hong."

After that, each of them took a bundle. The sisters were all filled with happy smiles when they received the red envelopes. This has become a routine. Last year, a bundle contained 2018 red bills, and next year it will definitely be 2O2O red bills.

After a while, they all went about their own business. Tian Jiayi then came to the living room and brought him a piece of news: "Did you know about the news that came out not long ago? The outside world is saying that the two neighboring cities will also issue new delisting regulations."

Hearing this, Fang Hong said with a half-smile: "You know how to play."

Tian Jiayi sat down next to him and said, "The management of the two exchanges did not respond in time, which is quite intriguing. Judging from the market reaction, everyone was very excited and interpreted it as good news, believing that it was pressure from the SGX market that forced them to make changes passively."

Fang Hong said calmly: "Let them do whatever they want, we can just watch the show, the SGX market is also gaining momentum in the A-share market anyway."

Tian Jiayi then said: "In addition, the SGX market has launched a second round of internal discussions on the new delisting rules, and everyone agreed to take advantage of this new rule to add one more item. Encourage companies to self-valuate and quote when registering for listing. Listed companies need to make a valuation of their own value in the market that they believe is reasonable and provide a quote to the market, which will help improve the transparency and accuracy of corporate valuations."

Obviously, this supplement is a safeguard for the previous new delisting rules. The previous rules required that the market fair value of delisted companies be assessed by a third-party professional appraisal agency, and listed companies repurchased shares from public investors at this fair price.

However, this regulation actually has a loophole. That is, if the CEO of a listed company hollows out the company through operations such as "emptying the cage and replacing the bird", then when a third-party agency conducts an assessment, the result of the assessment is that the company is insolvent and the stock price should plummet by another -99% to be reasonable.

Tian Jiayi added: "According to the SGX, if a listed company is forced to delist due to fraud or violation, it must repurchase the shares from public investors according to the valuation quotation given at the time of issuance. After the third-party appraisal agency assesses the fair value, it will repurchase at the issue price if the fair value is lower than the issue price, and at the fair price if the fair value is higher than the issue price. If the company is delisted due to its own poor management, it will repurchase at the assessed fair price."

This supplementary provision is obviously aimed at fraudulent behavior. The company's own poor management is a long-term process, which will be reasonably reflected in the stock price, that is, a downward trend. Investors cannot blame others for their losses. As long as the company discloses information in a timely manner and does not falsify performance, investors can only bear their own profits and losses. If the company delists, it will be evaluated by a third-party agency. The company will be repurchased at its actual value. If there is no money to repurchase, it will be liquidated by judicial auction.

For example, when a company was listed, the issuer reported a valuation of 30 billion yuan. Now it has been delisted due to poor management but without any illegal fraud. The assessed value is 5 million yuan, so it can be repurchased at the price of 5 million yuan.

However, if the company is found to have committed fraud and violations and is forced to delist by the exchange, even if the fair value is now assessed to be 5 million, it must be repurchased according to the issuer's previous offer of 30 billion valuation. Because the nature of the matter has changed, it has become a fraud and violation that has ruined the company and harmed the legitimate interests of all investors. The issuer must be held responsible for this, and the issuer must repurchase at the price it quoted before, no matter how high the issue price was, but now that it has been forced to withdraw.

If the stock price plummets due to poor business management, it is the investor's own poor foresight, and the loss is naturally borne by the investor, and no one else can be blamed. However, if the stock price plummets due to corporate fraud and violations, it is a fraud that harms investors, and the investor's losses must be borne by the issuer.

...(End of chapter)